David Farnham

Managing the new public services

Preface - List of Contributors - List of Figures - List of Tables - PART 1 THE CHANGING CONTEXTS OF MANAGEMENT - The Political Economy of Public Sector Change D.Farnham & S.Horton - Managing Private and Public Organizations D.Farnham & S.Horton - PART 2 MANAGERIAL FUNCTIONS - Strategic Management H.Elcock - Financial Management R.Tonge - Human Resources Management and Employee Relations D.Farnham - PART 3 CASE STUDIES - The Civil Service S.Horton - Local Government H.Elcock - The National Health Service G.Moon & I.Kendall - Education M.McVicar - The Police Service F.Leishman & S.Savage - PART 4 CONCLUSION - The New Public Service Managerialism: An Assessment D.Farnham & S.Horton - Bibliography - Index

Managing people in the public services

PART 1: BACKGROUND - Continuity and Change in the Public Services D. Farnham & S. Horton - Traditional People Management D. Farnham & S. Horton - PART 2: CASE STUDIES - The Civil Service S. Horton - The National Health Service S. Corby - Local Government G. White & B. Hutchinson - Education D. Farnham & L. Giles - The Police S. Horton - PART 3: ASSESSMENT - Towards a New People Management? D. Farnham & S. Horton

Public management in Britain

PART 1: THE CHANGING CONTEXTS OF PUBLIC MANAGEMENT The Politics of Public Sector Change D.Farnham & S.Horton Globalization, Europeanisation and Management of the British State S.Cope Managing Public and Private Organisations D.Farnham & S.Horton PART 2: MANAGERIAL FUNCTIONS Strategic Management in Public Services K.Isaac-Henry Performance Management, Quality Management and Contracts J.Rouse Marketing in the Public Sector R.Christie & J.Brown Human Resources Management and Employment Relations D.Farnham Exploiting Information and Communication Technology C.Bellamy PART 3: CASE STUDIES The Civil Service S.Horton Managing Local Public Services C.Painter & K.Isaac-Henry The National Health Service S.Corby Education D.Holloway, S.Horton & D.Farnham Managing the Police B.Loveday Social Services and Community Care E.Brunsden & M.May PART 4: CONCLUSION New Labour and the Management of Public Services: Legacies, Impact and Prospects S.Horton & D.Farnham

Organisational change and staff participation and involvement in Britain's public services

Britains public sector has undergone a series of radical structural and managerial changes over the past 20 years. These changes are associated with public‐sector reform and innovations in public management. They have impacted significantly on the ways in which public employees are recruited, selected, rewarded, assessed, trained and managed. This article outlines the impact of these changes on staff participation and involvement practices in the civil service, National Health Service (NHS) and local government, and highlights some of the major trends.

The New Public Service Managerialism: An Assessment

The aim of this final chapter is to review the nature, origins and impact of the new managerialism in the new public services and to point the way to the future. There is no doubt that the boundaries of state activity, the orientation of the public services and the ways in which they are managed are significantly different in the 1990s from what they were in 1979. It is also evident that these changes will continue. With the Conservatives being returned to office for a fourth consecutive term in April 1992, new managerial initiatives are planned and new organisational responses to public pressures are being proposed. As John Major (1989, p. 3) said, when Chief Secretary to the Treasury: ‘the changes within our public services [ over the last decade ] amount to nothing less than a revolution in progress’. This has involved ‘two radical changes. First, the change from volume to cash expenditure planning, and second the strong devolutionary push in financial management.’ He described the system as one in which ‘Ministers and senior managers concentrate on setting policy objectives and the resources needed to meet them; and the individuals who deliver the services use their ability and skills to tackle the problems.’

Collective bargaining in public services

This article shows that regulation of the employment relationship in European public services has tended to give more importance to collective bargaining than to unilateral employer regulation. Although collective bargaining is a general trend, it is not the same in every country. This article concentrates on collective bargaining levels and the outcomes of collective bargaining in selected European states. A major explanatory factor of the extent of collective bargaining is the nature of the civil service system. Reformed “non‐career” systems tend to adopt collective bargaining institutions, resulting in binding collective agreements between employers and unions, while classical “career” systems do not.

Managing Public and Private Organisations

The debate about markets and politics and the role of the state in producing goods and services, which dominated the 1970s and 1980s, raised the issue of whether there are differences between the ways that organisations located in the ‘public’ and ‘private’ domains are structured and managed. One view was that there were significant differences reflected in the use of different terms to describe the processes of running organisations in the public and private sectors. ‘Management’ described the way that private businesses were run, whilst ‘administration’ was a description of the approach to running public bodies. The former was associated with a so-called rationalist approach to organisational decision-making, with managers seen as the agents for achieving organisational goals and corporate growth with the most efficient use of resources. In the public sector, by contrast, public officials, employed by state agencies, implemented and executed governmental policies determined by the political authorities within a framework of law, where efficient use of resources was of only secondary importance.

Comparing Public Managers

Recent study of public administration has been dominated by the emergence of ‘the new public management’ (NPM). Yet whilst the NPM phenomenon is being discussed, analysed and evaluated across Europe and countries of the Organization for Economic Co-operation and Development (OECD, 1990, 1992, 1993), relatively little is known about the people actually handling the transition from classical public administration to NPM — ‘the new public managers’. Even in Britain, where NPM is most firmly rooted, an impressionistic survey of 20 or so leading texts on public administration or public management reveals numerous references to NPM and managerialism but only one to the ‘new public manager’ (Farnham and Horton, 1993, pp. 111–12).

People Management and Employment Relations

In recent years the public services have experienced substantial reforms, in terms of structure, organisation, administration and management; not least in people management. These reforms have been particularly marked since the Conservatives came to office in 1979 and are largely a reflection of changing government policies during the 1980s and 1990s. In essence, they are rooted in the belief that enhanced quality, effectiveness and value for money in the public services depend upon the injection of competition, commercialism and private-sector management ideas and personnel practices. Over this period, public services have been exposed to a variety of initiatives, including privatisation, centralisation and decentralisation, deregulation, market testing and subcontracting. These have primarily aimed at: cutting public expenditure; curbing the power of public sector unions and professional workers; strengthening management prerogative; improving standards of public service; and making the public services more responsive to the needs of ‘consumers’.

Staff Participation and Public Management Reform

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